Lexington, Kentucky – June 16, 2010 – In light of all of the recentinvestments scams including the infamous Bernie Maddoff, whistleblowers andthose with morals fear that the frauds they expose will result in unjustlawsuits filed against them by the companies they complain about. One suchsituation was that of the lawsuit filed by Fortune Hi-Tech Marketing againstFortune Social LLC and Joseph Isaacs in May 2010.

Joseph Isaacs and Fortune Social, LLC (collectively “Isaacs”) deny each andevery claim brought by Fortune Hi-Tech Marketing, Inc. (“FHTM”) in a filingmade today with the American Arbitration Association, who is overseeing thiscase. In addition, Isaacs fights back and asserts his own counterclaim forrelief against FHTM, Paul C. Orberson (individually and in his capacity asPresident of FHTM), Jeff Orberson (individually and in his capacity as ChiefOperating Officer of FHTM), and Thomas A. Mills (individually and in hiscapacity as Vice-President and Chief Executive Officer of FHTM) (collectively“FHTM”). Isaacs counterclaim claim Breach of Fiduciary Duty, Breach ofContract, Common Law Fraud, Unfair & Deceptive Business Practices, Failureto Register Securities, Fraudulent Practices Regarding the Sale of Securities,Civil Racketeering Conspiracy (violation of the Federal RICO statutes) andDefamation.

FHTM operates an unlawful product-based endless recruiting pyramid schemethat relies on untrue and misleading representations and unlawful, unfair, andfraudulent business practices. While FHTM purports to be in the business ofselling name-brand services like wireless, satellite television, home security,vitamins, nutritional products and travel services, its true business is usingconsumers to generate fee income for representing non-existent partnerships,major sports figures, and prominent businessmen. To entice consumers toparticipate, FHTM makes untrue or misleading claims regarding its relationshipwith Fortune 100 companies like Verizon Wireless, GE Security, Dish Networksand Travelocity to create the illusion that consumers can become millionairesin three to five years.

FHTM’s growth exploded when it began to lure consumers disenchanted withtraditional jobs and the recession that began in 2007 to inspirational andhigh-pressure business opportunity seminars touting an innovative businessmodel that promises huge financial rewards through multi-level networkmarketing. FHTM erring presenters claim to have proprietary tools, specialrelationships, and other support that allow consumers to grow their ownbusiness by partnering with FHTM’s “companies”.

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It would not be long before Isaacs (and the world) made several troublingdiscoveries about FHTM’s business plan and practices that doused hisenthusiasm: (1) Paul Orberson had not made any special arrangements with thecompanies mentioned at the business opportunity/presentation seminar or in thecompany produced videos; (2) the only way to earn a significant income and bepromoted up the ranks was to recruit additional IRs; (3) FHTM had not receivedregulatory approval for its pyramiding scheme in every state; (4) only ahandful of IRs had earned anywhere near the residuals projected; (5) theprominent businessmen, politicians, former attorney generals and sports figuresto whom FHTM constantly alluded were in fact IRs actively promoting their ownFHTM business; and (6) a growing number of state attorneys general had alreadybegun investigating FHTM in response to numerous complaints.

It turns out that FHTM’s ‘innovative’ marketing plan is nothing more than aface lift to an age-old scheme. According to the FTC’s Consumer ProtectionBureau:

Pyramid schemes now come in so many forms that they may be difficult torecognize immediately. However, they all share one overriding characteristic.They promise consumers or investors large profits based primarily on recruitingothers to join their program, not based on profits from any real investment orreal sale of goods to the public. Some schemes may purport to sell a product,but they often simply use the product to hide their pyramid structure. Thereare two tell-tale signs that a product is simply being used to disguise apyramid scheme: inventory loading and a lack of retail sales. Inventory loadingoccurs when a company’s incentive program forces recruits to buy more productsthan they could ever sell, often at inflated prices. If this occurs throughoutthe company’s distribution system, the people at the top of the pyramid reapsubstantial profits, even though little or no product moves to market. Thepeople at the bottom make excessive payments for inventory that simplyaccumulates in their basements. A lack of retail sales is also a red flag thata pyramid exists. Many pyramid schemes will claim that their product is sellinglike hot cakes. However, on closer examination, the sales occur only betweenpeople inside the pyramid structure or to new recruits joining the structure,not to consumers out in the general public.

Nonetheless, the truth is catching up with FHTM. On December 10, 2009, TheNorth Dakota Attorney General’s Office filed a Cease and Desist Order forviolation of the Consumer Fraud Law, the Transient Merchant Law, the HomeSolicitation Sales Law, and the North Dakota Pyramid Schemes Act. On January19, 2010, FHTM entered into a Assurance of Voluntary Compliance with the NorthDakota Attorney General’s Office. On March 16, 2010, the Montana StateAuditor’s Office filed a Temporary Cease and Desist Order against FHTM, Paul C.Orberson, Thomas A. Mills, and Dianne Graber (a Montana IR). According to theMontana State Auditor’s Office, FHTM has engaged in acts or practicesconstituting violations of the Securities Act of Montana, Montana CodeANN.30-10-101 et seq. On April 22, 2010, FHTM agreed to pay nearly million andto change its business practices to resolve the charge that it is operating apyramid promotional scheme.

With each passing day, more states are jumping on FHTM’s bandwagon. Thealarming rise in consumer complaints and governmental sanctions has promptedthe Better Business Bureau of Central and Eastern Kentucky to downgrade FHTM’srating from “B-” to “F”. At the same time, a proliferation of online bulletinboards and blogs, such as www.complaintsboard.com and www.scams.com criticize FHTM’s pyramid schemeconfirms that Isaacs’ experience is not unique. Will those operations be thenext target of Fortune’s high price legal team?

A CLASS ACTION SUIT HAS BEEN FILED AGAINST FHTM AND ALL OF THIER TOPDISTRIBUTORS. www.fhtmclassaction.info

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